question about being the beneficiary of a trust and filing bankruptcy

[jcmt1013]

question about trusts....

i am listed as the beneficiary of a trust (with 3 other family members). does anyone have experience filing bankruptcy with a trust attached to your name?

i am not allowed to touch the assets in the trust, and will not likely see any of the money for years, if ever.

thanks for any thoughts on this in advance...

[lrprn]

i am listed as the beneficiary of a trust (with 3 other family members). ... i am not allowed to touch the assets in the trust, and will not likely see any of the money for years, if ever.

Be sure to check with an experienced bk lawyer (hopefully your own), but I believe you must list the trust on your bk forms.

If you include the trust and the owner unexpectedly passes away and you receive your inheritance while your bankruptcy is active, then it will go to your trustee to distribute to your creditors. However, if you receive the inheritance after 180 days of filing (and from what you said this is the far more likely possibility), then it's yours to keep.

Worst case scenario....if you don't list the trust and unexpectedly you receive your inheritance money within 180 days of filing, then there's an excellent chance your trustee will not only dismiss your bankruptcy, but will dismiss it with prejudice which means you can't ever file on the debts you included this time again. Better to be honest and above-board - you do not want to be accused of bk fraud by the federal government - bad things wait for you in that dark corner!